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Minutes - Board - 2020-06-09COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS STUDY SESSION JUNE 912020 NOTE: THIS MEETING WAS CONDUCTED UTILIZING TELECONFERENCING PURSUANT TO GOVERNMENT CODE SECTION 54952.2 AND THE GOVERNOR'S EXECUTIVE ORDERS IN EFFECT WAIVING SOME OF THE REQUIREMENTS OF THAT SECTION. Members present Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer Members absent None Staff present Scott Carroll (General Manager), Noelani Middenway (District Clerk and Public Information Officer), Kaitlin Tran (Finance Manager), Dyana Bojarski (Administrative Services Manager), Gina Terraneo (Management Analyst II), Nabila Guzman (Management Analyst 1), Bao Vong (Engineering Technician), Edward Roberts (Code Enforcement Officer) Others present None Meeting called to order at 9:30 A.M. A. OPENING ITEMS Procedural: 1. Roll Call - (If absences occur, consider whether to deem those absences excused based on facts presented for the absence — such determination shall be the permission required by law.) President Ferryman called the meeting to order at 9:30 A.M. District Clerk and Public Information Officer, Noelani Middenway, noted that President Ferryman, Vice President Ooten, Secretary Schafer, Director Scheafer, and Director Perry were present at this time. B. PUBLIC COMMENTS Procedural: 1. Public Comments COSTA MESA SANITARY DISTRICT PAGE 2 MINUTES OF THE BOARD OF DIRECTORS STUDY SESSION HELD JUNE 912020 President Ferryman opened public comments. Ms. Middenway stated that the District did not receive any written comments from the public. Hearing no one wishing to address the Board, President Ferryman closed public comments. C. ITEMS OF STUDY Action, Receive and File: 1. April 2020 Organics Tonnage Report Recommendation: That the Board of Directors receive and file this report. General Manager, Scott Carroll, provided report details. He noted that the rate of organics recycling is consistent with previous reports. Vice President Ooten inquired about the City of Costa Mesa's organics recycling reporting. He recommended for District staff to contact the City's Energy and Sustainability Services Manager. Mr. Carroll stated that he does not have that information. He shared that District staff has attempted to connect with the City to discuss their organics recycling, and they are waiting for a response. There was no further discussion, and the report was received. Action: 2. May 2020 Solid Waste Diversion Report Recommendation: That the Board of Directors receives and file this report. Mr. Carroll stated that CR&R Environmental Services' recycling center is currently not operating due to their inability to comply with social distancing requirements. He shared that CR&R has implemented new social distancing guidelines that have been approved by the State and is scheduled to reopen their recycling center on July 4, 2020. There was no further discussion, and the report was received. Action, Receive and File: 3. May 2020 Code Enforcement Officer Report Recommendation: That the Board of Directors receives and file this report. Code Enforcement Officer, Edward Roberts, provided report details. He shared that he issued 29 violations during the last week of May. He stated that he has received several complaints regarding transients and scavenging but was unable to contact any violators. He added that no violations for graffiti have been issued. Secretary Schafer inquired about complaints regarding the trash delay due to the Memorial Day holiday. COSTA MESA SANITARY DISTRICT PAGE 3 MINUTES OF THE BOARD OF DIRECTORS STUDY SESSION HELD JUNE 992020 Mr. Roberts shared that he monitors his District email daily and did not receive any written complaints regarding the trash delay. There was no further discussion, and the report was received. Action, Receive and File: 4. Quarterly Legislative Update — Quarter 2 Recommendation: That the Board of Directors receive and file this report. Management Analyst II, Gina Terraneo, provided report details. She shared that California legislators returned from recess on May 4, 2020. She discussed congressional bill HR 7073 which seeks to give special districts access to funding laid out in the Coronavirus Relief Fund within the CARES Act. She stated that HR 7073 would require states to direct 5% of future appropriations to special districts. She reviewed pending state legislation that District staff recommends supporting. She discussed AB 1672 which prohibits companies from falsely claiming that sanitary wipes and similar wipe products are flushable. She added that AB 1672 would establish a civil penalty of $2,500 per violation. She discussed AB 2107 which would extend the availability of securitized limited obligation notes as a funding source for special districts. She added that AB 2107 would allow special districts to acquire and improve upon land, facilities, or equipment and that it is viewed as a cost-effective financing method for special districts to use on a variety of projects under $2 million. She discussed AB 2182 and SB 1099 which both seek to address a public agency's ability to maintain critical infrastructure during public safety power shutoffs. She added that air quality control relations make it difficult or impossible to conduct sufficient emergency generator testing while still abiding by time limits set for generator use. She noted that SB 1099 is supported by many local and statewide water agencies to ensure that agencies can test and maintain their generators without that time counting toward their time limitations. She stated that the District falls within the jurisdiction of the South Coast Air Quality Management District which permits backup generators to run for no more than 200 hours, including the time necessary for maintenance and testing. She added that depending on the number of power outages that the District experiences in a year, 200 hours may not be enough time for testing and emergencies. She discussed AB 2987 which would allow public agencies to post notices inviting formal bids on their website rather than publishing them in the newspaper. She reviewed pending legislation that District staff recommends opposing. She discussed SB 939 which seeks to prohibit commercial landlords from evicting tenants until 90 days after the COVID-19 state of emergency is lifted and authorizes certain types of commercial tenants to negotiate rent modifications and other economic requirements with landlords. She added that SB 939 would limit the District's ability to manage its current tenant in its headquarters office building. Secretary Schafer expressed recognition for Ms. TerraneoIs report and issuance of support and opposition letters on behalf of the District and the California Special Districts Association. There was no further discussion, and the report was received. COSTA MESA SANITARY DISTRICT PAGE 4 MINUTES OF THE BOARD OF DIRECTORS STUDY SESSION HELD JUNE 912020 Action: 5. OC Fairgrounds Wastewater System Recommendation: That the Board of Directors receive and file this report. Mr. Carroll provided report details. He stated that the District has been analyzing the Mendoza Pump Station's tributary area due to its increased inflow. He shared that the District recently performed a smoke test of the tributary area and determined that the excess inflow is coming from the OC Fairgrounds property. He noted that the District has discovered two illegal connections which have been closed by pouring concrete inside the source. He shared that the District received the OC Fairgrounds sewer plans which helped to determine the location of all manholes and sewer pipes of the property. He added that the District is scheduled to smoke test that entire area in July 2020, and it is projected to cost less than $10, 000. Vice President Ooten stated that the District has $2.3 million in undesignated wastewater funds. He inquired about District staffs decision to smoke test the area in fiscal year 2020-2021. Mr. Carroll stated that the $2.3 million in undesignated wastewater funds belongs to the District's Asset Management fund. He noted that District staff would have to receive Board approval to appropriate the funds for the smoke testing. He stated that he views the cost for the smoke testing as an operating expense. Vice President Ooten expressed approval for smoke testing in July 2020. There was no further discussion, and the report was received. Action: 6. Consider Citizens Advisory Committee FY 2020-21 Goals and Objectives Recommendation: That the Board of Directors provide feedback and suggestions to District staff. Mr. Carroll provided report details. He stated that, according to the Citizens Advisory Committee's (CAC) Handbook, the CAC Chair, General Manager and Board President meet every year to discuss the goals and objectives the Board would like the CAC to address. He presented the Board with a suggested list of goals and objectives for fiscal year 2020-2021. Vice President Ooten stated that the list appears to be extra work for District staff. He suggested limiting the CAC's list of goals and objectives since District staff will have to expend time to educate the CAC on a wide range of issues. He recommended determining the level of urgency for each item on the list and noted that most of the items are beyond the CAC's scope of knowledge. Director Perry expressed his agreement with Vice President Ooten and stated that the list is very extensive. He recommended trimming the list to five to ten items. COSTA MESA SANITARY DISTRICT PAGE 5 MINUTES OF THE BOARD OF DIRECTORS STUDY SESSION HELD JUNE 912020 Mr. Carroll reminded the Board that each item is available for discussion. Director Scheafer suggested excluding the items related to District finances and budget. He recommended for the CAC to discuss matters relating to sustainability, recycling, household hazardous waste, and biomass conversion. Secretary Schafer and President Ferryman expressed agreement with Director Scheafer's recommendation. Director Perry inquired if President Ferryman has met with the CAC Chair and the General Manager. Mr. Carroll noted that once the list of goals and objectives has been determined by the Board, then the General Manager and the Board President will meet with the CAC Chair. Director Perry expressed agreement with Director Scheafer's recommendation. President Ferryman stated that the Board can prioritize five items from the suggested list. Vice President Ooten inquired if the CAC has reviewed the list. He recommended discussing the list with the CAC to determine their interests. He expressed his support for Director Scheafer's recommendation. Mr. Carroll confirmed that the CAC has not reviewed the list. Secretary Schafer stated that matters regarding District finances will require a significant amount of time to educate the CAC. Mr. Carroll shared the benefits of having the CAC discuss the District's proposed budget. Vice President Ooten stated that the CAC can participate in the budget process as members of the public. Director Perry suggested that President Ferryman and Vice President Ooten review the list during their monthly agenda meeting with Mr. Carroll and District staff. He stated that the finalized list can be presented to the Board for approval. The Board expressed agreement with Director Perry's suggestion. There was no further discussion. Action: 7. Engineering Services Ad Hoc Committee Recommendations Recommendation: That the Board of Directors provide feedback and suggestions to District staff. COSTA MESA SANITARY DISTRICT PAGE 6 MINUTES OF THE BOARD OF DIRECTORS STUDY SESSION HELD JUNE 912020 Mr. Carroll provided report details. He reviewed the current projects that are being performed by Robin B. Harriers & Associates (RBH) and future, budgeted projects. He stated that, due to the large number of capital improvement projects (CIP), the Engineering Services Ad Hoc Committee recommends implementing a hybrid approach for District engineering services. He stated that the Committee recommends hiring an in-house District Engineer while still utilizing RBH to assist with CIPs related to design, construction management, and other engineering projects requiring a significant amount of work. He reviewed the benefits of having an in-house District Engineer with the biggest benefit relating to institutional knowledge. He shared that the staff report details how the workload for the District's engineering services will be divided between an in-house District Engineer and RBH. He noted that an in-house District Engineer will serve on the General Manager's leadership team which discusses District procedures, policies, work culture, and staff development. He added that the salary range for an in- house District Engineer is $126,076 to $170,000. He stated that if the Board approves the Committee's recommended hybrid approach, then the District will hire a District Engineer with a starting salary in the mid -range around $150,000. He added that the District will be recruiting someone with experience. He recommended that the District hires an executive recruiting firm to help find a qualified applicant. He stated that the estimated costs for a recruiting firm is $25,000 to $30,000 and has a prepared list of local firms that focus on public recruiting. He reviewed the costs of the hybrid approach to the District's current costs for contracting with RBH. He mentioned that if the Board approves the hybrid approach then the District Engineer will occupy the office that is currently being rented to Second Chance OC. He noted that the District will lose about $6,300 in annual revenues from terminating the lease. He reviewed the Committee's complete recommendation and noted that District staff will present the finalized recommendation to the Board for approval at their Regular Board meeting on June 22, 2020. Director Perry inquired if Vice President Ooten has reviewed the recommendation. Vice President Ooten confirmed that he has reviewed the staff report and stated that 60% of the District's budget is for CIPs. He expressed agreement for Mr. Carroll's suggestion to hire an in-house District Engineer. He reviewed the cost benefits associated with having an in-house District Engineer who will provide substantial oversight for District engineering services. He added that it will eliminate the need to acquire alternate engineering services to avoid conflicts of interest when RBH conducts private projects. He recommended investing the $2.3 million in undesignated wastewater funds to hire a District Engineer. He stated that the District needs in-house expertise regarding engineering services. He suggested utilizing local recruiting firms to assist with the District's search. He recommended against recruiting someone that would require relocation expenses. Director Perry stated that, with Vice President's Ooten support, he approves of the recommended hybrid approach for engineering services. COSTA MESA SANITARY DISTRICT PAGE 7 MINUTES OF THE BOARD OF DIRECTORS STUDY SESSION HELD JUNE 912020 Vice President Ooten stated that the District will not be saving a significant amount of money from the hybrid approach, but it will be able to better supervise internal operations and the work performed by RBH. Director Perry inquired if District staff has discussed the hybrid approach with RBH. Mr. Carroll stated that he shared the Committee's recommendation and the staff report with Interim District Engineer, Michael Benesh, of RBH. Secretary Schafer and President Ferryman expressed support for the Committee's recommendation. Vice President Ooten inquired if the District will publish a request for proposals (RFP) to hire a recruiting firm. He recommended contacting Robert's Consulting Group which is a local recruiting firm. Director Scheafer recommended contacting CPS HR Consulting which is in Sacramento. Mr. Carroll shared that all of the consulting firms being considered are California - based. There was no further discussion. D. CLOSING ITEMS Procedural: 1. Oral Communications and Director Comments Vice President Ooten expressed his eagerness to smoke test the OC Fairgrounds property. Secretary Schafer inquired about the work being performed by the District's communications and public outreach firm, Tripepi Smith. Mr. Carroll shared that Tripepi Smith has recently submitted their Express Communications Assessment report which is being reviewed by District staff. He noted that District staff scheduled Tripepi Smith's kickoff meeting to take place at the Regular Board meeting on July 27, 2020. There was no further discussion. COSTA MESA SANITARY DISTRICT PAGE 8 MINUTES OF THE BOARD OF DIRECTORS STUDY SESSION HELD JUNE 912020 Procedural: 2. Adjournment President Ferryman adjourned the meeting at 10:14 A.M. Arlene Schafer - Secretary 9s-C. es Ferryman ident